Nestle India to invest 2,600 crore in scaling capacity
26 October 2020
Nestle India recently said it is set to invest Rs 2,600 crore in India over the next three-to-four years to expand existing manufacturing capacities, apart from setting up a new plant in the state of Gujarat, as demand for packaged foods benefits from strong in-home consumption.
“As a vindication of the confidence and trust in the Nestlé journey in India, I am pleased to share that we plan to invest Rs 2,600 crore over the next three to four years to augment our existing manufacturing capacities, as well as towards our new under construction ‘state of the art’ factory in Sanand, Gujarat," Suresh Narayanan, chairman, and managing director, Nestlé India said on Friday. The investment includes Rs 700 crore the company announced last year in setting up a new plant for its packaged noodles brand Maggi.
Recently, the maker of Maggi noodles and Nescafe coffee posted its September quarter earnings. The company benefitted from a significant uptick in in-home consumption with brands such as Maggi, Kitkat, Maggi sauces, and its portfolio of coffee brands witnessing “double-digit" growth. Supplies normalized and factories returned to normalcy in the September quarter, the company said in a statement to the media.
Its profit for the September quarter stood at Rs 587 crore, down 1.37% year-on-year from Rs 595.27 crore the company reported in the year-ago period. However, the company said net profit is not comparable as the cumulative effect of lower tax rate made applicable from 1 April 2019 was adjusted fully in the quarter ended 30 September 2019. Profit before tax rose 12.4% to Rs 786.5 crore in the third quarter.